HOW TO CREATE PAYCHECKS IN QUICKBOOKS
This article explains how to create paychecks using different options available in QuickBooks.
Things you need before creating paychecks in QuickBooks:
Supported version of QuickBooks with latest release
An active payroll service subscription
Latest payroll tax table
QuickBooks in single user mode
Setup employees and required payroll items
Enter YTD amounts( if applicable)
Enter employee’s direct deposit information in the employee profile( if you want to pay employees in to their accounts)
Mentioned below are the three options available in QuickBooks for creating paychecks. Though they look different but the steps to create paychecks are fundamentally the same.
1. Scheduled Payroll:–
Use this option if you pay your employees on a regular schedule such as weekly, biweekly, semimonthly, monthly, etc. Scheduled payroll also allows for grouping if some of your employees are paid on a different schedule. To setup payroll schedule go to Employees> Add or Edit Payroll Schedules
2. Unscheduled Payroll:-
Use Unscheduled Payroll option to pay your employees if the pay frequency and paycheck date keeps on changing. You can also use this option to create a bonus/commission check that is not integrated with their normal paycheck
3. Termination Check:-
Use this option to pay a released/terminated employee’s last paycheck. This process assists you in creating a final paycheck, entering the employee’s release date and marking them inactive (optional)
To create paychecks go to Employees > Pay Employees. Select the option from the following that applies to you
Scheduled Payroll: QuickBooks will take you to the Payroll Center (and Pay Employees tab in QuickBooks 2014 or later).
From Pay Employee section click the appropriate schedule.
Click Start Schedule Payroll button. QuickBooks will open up the Enter Payroll Information window.
QuickBooks will take you directly to Enter Payroll Information window.
The next step is to verify the Pay Period Ends date, Check Date and Bank Account the money is drawn from.
For Check Options:
- Click Print paychecks on check stock to queue paychecks for printing from QuickBooks.
- Click Handwrite & assign check numbers if you’re writing your paychecks by hand. Enter a First Check#.
When you enter a check number, the number will increase by 1 for each subsequent check written from the account specified in the Bank Account field.
Check mark the name of employee(s) you want to pay, enter or verify the employee’s amounts in the appropriate columns and to edit employee paycheck information for one paycheck only, click the employee’s name to access the Paycheck Details.
You can do this to add payroll items temporarily or to modify amounts before creating the paycheck.
- If the employee uses Direct Deposit, verify that the Use Direct Deposit box is selected.
- If you do not want vacation and sick to accrue on this specific paycheck, check the box to Do Not Accrue Sick/Vac.
Click Save & Next to go to the next employee, or click Save & Close to go back to the Enter Payroll Information window.
When the checks are ready to be created, click Continue.
In the Review and Create Paychecks window, review the Paycheck Options:
- Print paychecks from QuickBooks to have QuickBooks print the paychecks.
- Assign check numbers to handwritten checks if you’re writing your paychecks by hand or sending them to be deposited directly into the employees account.
If you use direct deposit to pay your employees, you can leave the First Check# field blank. This field can be used to enter a text memo (for example, DD), limited to 11 alphanumeric characters, which will print out on your employees’ pay stubs.
Verify the amounts for each employee in the Review and Create Paychecks window, and click Create Paychecks. Print the paychecks or pay stubs.